|North Carolina's banking regulator has shut down Cape Fear Bank.
The Wilmington, N.C., bank was closed today by the state's Office of Commissioner of Banks, a media statement said. The Federal Deposit Insurance Corporation was named receiver.
The failed institution, established in 1998, had eight branches and 94 employees. Residential mortgage outstanding at the end of last year were $99 million, while commercial mortgages were $120 million. The bank also held $143 million in and construction and land development loans.
It had recently entered into a written agreement with the Federal Reserve Bank of Richmond, Va., that required it to conserve capital, maintain compliance with laws and regulations and report back on its progress. In addition, the Federal Deposit Insurance Corporation issued a cease-and-desist order against the company on Feb. 24.
First Federal Savings and Loan Association of Charleston has assumed all of Cape Fear's $403 million in deposits as of March 31. First Federal also agreed to purchase $468 million of Cape Fear's $492 million in total assets. The FDIC agreed to share in losses on $395 million in assets.
The FDIC expects to lose $131 million as a result of the failure.
Cape Fear Bank was the 22nd federally insured bank failure this year.